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Testing water quality at a government facility.— File photo provided by Zofeen T. Ebrahim

The Supreme Court on Tuesday directed all provinces to impose a tax of one rupee per litre on companies bottling and selling water while also constituting a committee to examine the quality of 'mineral water' being sold by these companies.

The tax will be applicable on water extracted from the ground by mineral water companies. The issue as it concerns beverages companies will be taken up at a later stage.

The committee to examine the quality of bottled water being sold in the markets will be headed by environmental scientist Dr Ahsan Siddiqui and include officials from the Environment Protection Agency, Punjab Food Authority as well as representatives of bottled water companies.

The committee will submit a report on its findings within the next 10 days. In case it finds that any company is selling 'substandard' mineral water, the company in question will be given three months to improve its product before punitive action is taken against it.

Chief Justice of Pakistan Saqib Nisar issued orders to this effect while wrapping up a suo motu case pertaining to the exploitation of water resources by mineral water companies operating in the country.

The issue had cropped up in September during the hearing of a case related to the drying up of the Katas Raj pond due to heavy consumption of subsoil water by nearby cement factories.

Arguments dismissed

During today's hearing, a PepsiCo representative told the apex court that the company earns Rs158 million per year from bottled water. He said the company has been operating in the country for the last three decades.

Discussing the cost of bottled water, the representative said it cost the company Rs5 to add minerals to the water it extracts. At this, the CJP intervened and remarked that he had seen a report according to which there was no [additional] mineral in the water.

"Water companies have stolen water for their gains," CJP Nisar regretted, adding that the court will constitute a commission to find that how much water had been used up.

"Bottled water companies earn billions of rupees without paying a single penny: I will not let people die of thirst for the profit [of bottled water companies]," the CJP remarked.

"What would we say to our offspring 30 years hence if they do not have enough water to consume," the CJP said at one point.

"If you don't want to accept the deal [paying Re1 per litre], you are free to exit the industry," the CJP said while concluding the case.

"Show some courage and close the factory. I will see how long can you keep it closed," he challenged the companies.

During the last hearing, Justice Nisar had regretted that bottled water companies were selling water after extracting it from the ground almost for free and had summoned the owners of all mineral water companies to appear in person before the court on Nov 13 (today).

If minerals are not added, the water , which will be just distilled water, will be unpalatable.

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PrakashG

Nov 13, 2018 04:26pm

Aren't they already paying tax on the profit they earn?
Charges on extracted water should be determined by professional agencies like WAPDA, and not arbitrarily leveled.

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Maverick

Nov 13, 2018 04:31pm

Raising Rupees 1 per liter will result in Rupees 2-5 per liter for consumers. So they will automatically shift the burden to consumer and increase profit and justify the increase in price due to government measures. Alternatively we should devise a water tax on such factories where they pay tax on the total water sold. While keeping the price same for consumers.

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Prosperous Pakistan

Nov 13, 2018 04:32pm

Its govt responsibility to provide clean water. If they do then these bottle companies automatically close...
Anyways for this one rupee they will increase price by 5 rs

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blunt

Nov 13, 2018 04:32pm

this 1 Re per liter would be charged to the consumer by the company.

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Aqua

Nov 13, 2018 04:35pm

@Khan, Please don't do that. 1litre water bottle will cost you Rs 300 if you go by that standard.

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Faisal

Nov 13, 2018 04:43pm

These companies shouldn't pass on the charges to the customers.

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Hello123

Nov 13, 2018 04:57pm

This tax shall be paid by the consumer. The water companies will simply pass the cost onto the consumer.

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SHAHID SATTAR

Nov 13, 2018 05:02pm

@Aqua, Good idea. It should be in percentage terms keeping in view the exploiting ways any one can use if simply a rupee per litre is fixed.

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Awaam

Nov 13, 2018 05:27pm

This tax will just be passed onto the consumers.

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Ubaid

Nov 13, 2018 05:30pm

Why not 5-10 Rupees per litre.

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Ark

Nov 13, 2018 05:45pm

Tax will be passed on to consumer

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Umair

Nov 13, 2018 05:47pm

Since when did CJ get authority to make tax laws? Making laws in sole responsibility and privilege of parliament

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khanm

Nov 13, 2018 06:05pm

Misconception there aren't any mineral water... it is filtered water provided by the city..some of the companies suck the water out from the tube wells...mineral water is restricted for our royalty cos an average person cannot afford that...

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N.Sid

Nov 13, 2018 06:17pm

Mineral water companies are the reason ground water levels are decreasing and Pakistan has been turned into a water stressed country...also aerated drinks, cola drinks should be banned for this very reason and causing huge health problems lie diabetes osteoporosis, tooth decay,high blood pressure and heart diseases...third world countries are there happy hunting ground.

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m.asif

Nov 13, 2018 06:18pm

Here in north america there is no official specified standard for bottled water. Tap water proclaimed to be safest drinking
water in the region. Public water system is strictly subjected to prescribed specifications and consumer is encouraged to drink tap water and use the same for all domestic needs.

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N.Sid

Nov 13, 2018 06:21pm

These mineral water companies bribes and kickbacks the water authorities here to make sure citizens gets poor quality adulterated water and they are left with no choice to drink bottled water...this is a multi billion rupee racket and a cartel. They should be thrown out and water supply to urban areas should be improved with filtered water.

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Nawaz

Nov 13, 2018 06:31pm

Excellent decision! No more loot and plunder of underground water.

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Ahmed

Nov 13, 2018 06:35pm

This additional cost will be passed on to the consumer.

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Danish

Nov 13, 2018 06:44pm

Pakistan water testing labs are sub standard plus corrupt people are sitting there who certified the samples. No check and balance. Water supplies plant don't exist . Water tanker mafia control the tube wells in pakistan. CJ first sort out CDA and other water boards so people get clean water

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Gul

Nov 13, 2018 06:52pm

Why not on cold drinks? They are also using ground water

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just Saying

Nov 13, 2018 07:00pm

Private firms should be scrutinized and better policy structure for pricing should be inacted. But, I think, providing clear water is the job of government.Poor don't have enough to eat twice a day how will they manage to buy drinking water.

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Imran Ahmed

Nov 13, 2018 07:09pm

The Taxing Power
The limits to the right of the public authority to impose taxes are set by the power that is qualified to do so under constitutional law. In a democratic system this power is the legislature, not the executive or the judiciary. https://www.britannica.com/topic/tax-law
If any person or body wilfully injures the Constitution of Pakistan that person must be sternly dealt with.

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PositiveMind

Nov 13, 2018 07:22pm

MashAllah..great going..CJ keep it up

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M. Saeed

Nov 13, 2018 07:23pm

Without knowing the specifications of "Standard Mineral Water", it is not possible to decide if any company is selling 'substandard' mineral water.

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Neshi

Nov 13, 2018 07:24pm

Army, being a disciplined and patriotic organisation, should come forward and start producing and selling mineral water. It shall also help them raise resources.

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naveed

Nov 13, 2018 07:38pm

who does he think will ultimately pay that cost.....consumer!

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Amjad Durrani Engineer USA

Nov 13, 2018 07:52pm

A highly commendable decision enforcing the bottling companies to market safe mineral water to consumers. The recent data of quality tests carried out by the PCSIR labs. on samples collected from 27 bottled water marketed to consumers, shows that except 2 all others were tap water. The CJP is very right in taking action against this daylight robbery where unsuspecting consumers are paying high cost without getting returns.No doubt that increase in payable taxes by these companies is a right step, but it must be assured that the buck is not passed on to the consumer as always is the case.Further it is prudent that after the submission of report by the technical committee, necessary long term mechanism in quality control of this product inform of 3rd party certification in lieu of food inspector ‘s report, is in place, making this industry to pay penality in case of default.This would require random sampling as well as quality control assurance through auditing of data of industry’s lab

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Nathan Shaw

Nov 13, 2018 08:07pm

Good decision. But I was wondering about outcomes.... 1 Re per litre tax on mineral water companies means that companies too will increase Re 1 per litre in price for general public? If this is the case then Government must ensure complete implementation of this decision.

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A Friend

Nov 13, 2018 08:10pm

The consumer will end up paying the Rs 1 extra

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Sensible

Nov 13, 2018 08:17pm

Charging tax will just pass the burden to the consumers.
It's better to invest in to availability of free, clean drinking water, so that people are not dependent on bottled water.

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ahmad

Nov 13, 2018 08:36pm

This reminds me, how much GOVERNMENTS HAVE FAILED to safe guard the interests of country. They are there for merely looting.

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Hussam Ali

Nov 13, 2018 08:49pm

Great CJP. Keep it up

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Tariq, Lahore

Nov 13, 2018 08:50pm

@PrakashG, Correct! But the water companies will line 'some' WAPDA officials' pocket and were back to square one!

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M.Sethi

Nov 13, 2018 08:57pm

Taxing them is no skin of these companies bones.Because all they will do is add the cost and sell to the consumers.In all honesty,the end burden will have to be shouldered by the buyers,who are already facing huge inflation caused by the governments recent increase in gas,electricity and petrol prices !

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Azmat Shah

Nov 13, 2018 08:58pm

@M. Saeed, Experts will decide. In fact they should pick up bottles from the market to for assessment instead of giving them a chance of fooling the system

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Adnan Akhter

Nov 13, 2018 09:04pm

Long live CJ, all these actions should have been taken by the Govt of the times.

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Mujtaba

Nov 13, 2018 09:26pm

The water companies will gladly pay the tax, they will just shift the cost to the consumers, so all of us will be paying Rs 1/L

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haris

Nov 13, 2018 09:47pm

@Aqua, Exactly, it should be applied on the income they get by selling. The more the sell the higher their income is and the more tax they have to pay. This way they will not put burden on the public.

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Srini

Nov 13, 2018 09:49pm

"Bottled water companies earn billions of rupees without paying a single penny"
What is this means ? when a finished product is leaving factory tax is added automatically across the world, I don't understand this in Pakistan

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Prabhjyot Singh madan

Nov 13, 2018 10:14pm

I remember the time when "bottled water" was so new and alien to us. We used to laugh at spending 10 rupees for a 500ml bottle.

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mas

Nov 13, 2018 10:33pm

Knee jerk reaction from CJP without realizing that our governments are incapable of providing safe, clean water to the masses. That is why people resort to bottled water. Tax of Rs 1. will hurt the domestic consumers who use this water due to nonavailability of clean drinking water, majority of them belong to middle and lower middle income segment.

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Abdul Rahman Jan

Nov 13, 2018 10:39pm

Good idea CJP. However, instead of Rs 1, these companies should pay 1 US dollar per litre, that they extract from our land, and by which action they are denying water to many Pakistanis who cannot afford bottled water. Please consider this.

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Sid

Nov 13, 2018 10:55pm

If market price rises then CJ is watching... :)

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yaaz81

Nov 13, 2018 11:14pm

In the end, I guess the consumers will end up paying this extra 1 rupee per litre and these big compsnies will not loose anything!

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Reality

Nov 13, 2018 11:23pm

@M. Saeed, They are printed on each water bottle.

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Reality

Nov 13, 2018 11:23pm

A truly appreciated common sense decision.

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NK

Nov 14, 2018 12:37am

Once the dam is up water scarcity should be removed.Clean tap water should reach every home, the demand for bottled water will automatically die and the looting will end too.

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Sameer

Nov 14, 2018 12:39am

Supreme court mustnt let this rs.1 be passed on to consumers. Otherwise this whole exercise was wasted.

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Ash2000

Nov 14, 2018 01:36am

These decision should be given by governments instead of court. What is basis of Rs. 1 tax? Why not Rs. 5 or 50 paisa? These kind of arbitrary decisions scare companies to invest?. Yes, you should charge all companies for water extraction but do it in proper way. In this case, water companies will just increase the price by Rs. 2 and laugh to the bank as with temporary reduction in sales for couple of months, sales will be back and their profit margins increase. Loser will be middle class people.

Proper way will be to work on supplying clean drinkable water through pipelines to home so that majority don’t have to buy bottled water. Sure charge water companies for water extraction.

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AB

Nov 14, 2018 02:39am

Another good decision by the CJ.

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AB

Nov 14, 2018 02:47am

@awan, but you were getting unchecked adulterated water.The companies we're fooling people the same way restaurants use imported fat of different animals and melt it and use this garbage as cooking oil,the restaurants should be the next target

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HA

Nov 14, 2018 05:06am

It is our wish that he remains C.J. for ever and do not take retirement given the interest we have in past from former Cjs.

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Adi

Nov 14, 2018 06:14am

If govt provides clean water to hones, nobody will buy mineral water bottle.

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Shahzad

Nov 14, 2018 06:31am

The price of the bottle should be reduced and the tax increased to give benefit to the consumer - the companies should work on minimum profit or get lost.

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raza

Nov 14, 2018 07:57am

@awan, agreed with this cost of water will go up and again general public will have bear it.CJ should control price also now

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BAXAR

Nov 14, 2018 03:14pm

@Adi, "If govt provides clean water to hones, nobody will buy mineral water bottle." But in that case, they will not pay the government officials, these officials will not be able to to provide food to their children, and editorial will ask the courts to provide alternate means of income to these poor affected officials. Just like they are asking for compensation for encroachments that were removed in Empress market.